Absa Bank Kenya Plc recorded a 14.7% growth in after-tax profit to KES 16.9 billion in the first nine months ended September 2025, up from KES 14.7 billion in a similar period the previous year, powered by growth in non-interest income.
Absa Bank’s net interest income (NII) fell by 4.6% year-on-year to KES 33 billion from KES 34.5 billion in the same period in 2024, primarily due to declines in interest rates on loans and advances.
The contribution of NII to total operating income declined to 70.7% from 75.5% in September 2024. Meanwhile, non-funded income rose by 11.3% to KES 13.6 billion, reflecting shifting macroeconomic conditions affecting the income mix.
Interest income from loans and advances decreased by 19.7% to KES 33.26 billion. Conversely, interest income from government securities surged by 55.3% to KES 10.1 billion, mirroring the prevailing interest rate trends.
Total operating expenses contracted by 12.2% to KES 22.3 billion, driven by a 40% decline in loan loss provisions, which fell to KES 4.8 billion from KES 8 billion. Excluding loan loss provisions, operating expenses grew at a modest 0.6% to KES 17.5 billion from KES 17.4 billion in September 2024.
Absa Bank Balance Sheet
Absa Bank’s asset base expanded by 14.4% to KES 554.3 billion, while total equity rose sharply by 30% to KES 94.4 billion. Customer deposits increased by 9.2% to KES 384.3 billion. However, its loan book contracted marginally by 0.6% to KES 309.7 billion from KES 311.5 billion. The loan-to-deposit ratio (LDR) stood at 80.6%.
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